Schwab, E-Trade lose online market share 8-14-98

CBS.MarketWatch.com

Analysts' reports agreed Friday that Charles Schwab Corp. and E-Trade Group Inc., the two biggest players in the online brokerage business, lost market share in the second quarter. Researchers at Minneapolis-based Piper Jaffray Inc. and in Credit Suisse First Boston's San Francisco office said Schwab's market share fell almost 2 percent, while E-Trade lost about 1 percent.

Franco estimated that 22 percent of all retail trades in the first six months of the year were conducted online. And the strong growth of the first quarter, when the number of online accounts at the top 10 brokerages rose to 4.9 million, continued in the second quarter, with a further gain of 21 percent. Perhaps indicating that commission cuts have ended, Franco said, the rates charged by the top 10 firms were essentially unchanged in the second quarter.

The Piper Jaffray analyst predicted the balance of the year will see new competition for online trading business as traditional financial institutions such as banks and full-service brokerages roll out offerings. "With the planned release of valuable new online trading features and the major marketing campaigns, we expect quarterly growth rates to remain in the 20 percent range for the next six months," Franco said.

Internet ad agency IPO pops 43 percent

Investors' appetites for Internet company stock offerings remained healthy Friday as New York-based 24/7 Media (TFSM)
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raised almost $45 million by selling 3.25 million shares at $14. During the day's trading, the shares rose 43 percent to $20. The company sells advertising inventory on three networks of Web sites.

UPI's Net-focused CEO resigns

UPI's chief executive officer, James Adams, who outlined plans to revive the Washington-based wire service by offering stories and pictures for a fee on the Internet, is leaving his position. Adams will become CEO at a company involved in intelligence gathering but remain on the UPI board. "The first thing I want to make clear is that I am not leaving UPI,'' Adams said. "I will be remaining as a director and will be closely involved in day-to-day operations." He gave his assurance that UPI's corporate mission to become a leader in what he has called the Knowledge Age remains unchanged. Garry Meldrum, currently executive director of business development, will head the company as chief knowledge officer. He has helped develop UPI's new Shaping Knowledge products, which deliver online packages of tailored content.

Fox in final frontier

Fox News Online will expand its science and technology coverage with a new feature, The Week in Space, available only online. It will include news, profiles, quotes and photos culled from astrological media. One of the site's (www.foxnews.com/scitech/space/index.sml) sections, Telescope: A Look in Space, is a photo gallery taken from NASA's extensive catalog of satellite photos.

Top executives of two of the Internet's most popular Web companies say they aren't planning on making acquisitions that might bring them branded or proprietary content. Chief Executive Officer Robert Davis of Lycos (LCOS)
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told CBS.MarketWatch.com that he's focused on making his Web site a hub to which users come to find utilities, services and content. In response to questions about Lycos' reported acquisition talks with other media companies, he said buying a media company doesn't interest him. Citing the millions of monthly visitors to the site, he said his audience compares favorably with that of other media operators.

The chief operating officer of the world's most popular Web site also said his company's intention is to go it alone. Jeff Mallett said there are no plans for Yahoo! Inc. (YHOO)
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to buy a media business because it doesn't want a single content provider, Bloomberg News reported. "Our primary role is not to produce original content. It's to aggregate and give consumers choice and content," Mallett said.

Apple's iMac computer is set to go on sale across the United States Saturday. The company said the kickoff will be supported by $100 million worth of television, magazine, billboard and radio advertising. Apple (AAPL)
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interim chief Steve Jobs said the message being spread is that "iMac is the computer for the tens of millions of consumers who want to get on the Internet easily, quickly and affordably." The message is intended to take advantage of recent market research showing that Internet access is now the biggest factor driving PC sales. The first national TV spots for iMac will run Sunday on ABC's "Wonderful World of Disney." See related story.

Webcast from Woodstock this weekend

Twenty-nine years after Woodstock, musicians and fans are returning to Max Yasgur's farm in upstate New York. And this time it's on the Net. Weekend performances by Don Henley, Stevie Nicks and Joni Mitchell will be among those featured at "A Day at the Garden" and Webcast in partnership with Infoseek Inc. (SEEK)
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. The Web address is concert.infoseek.com. The music was to begin Friday and last through Sunday. See complete story.

Major media sites dominate awards

When it comes to Web awards, it appears bigger is better. The seven nominees for the Hollywood CyberAward for best entertainment site were all projects produced in concert with television programmers or major national magazines. The winner was Paramount Digital Entertainment's Entertainment Tonight Online (www.etonline.com), which beat other nominees including US Magazine (www.usmag.com) and E! Online (www.eonline.com). The CyberAwards were handed out at the Hollywood Film Awards gala this week in Beverly Hills, Calif.

The full Monet

On the Web, you can get a month's advance look at a Boston exhibition of the works of Claude Monet. The Explore Monet's World site, at www.fleet.com/monet, shows visitors the places Monet lived and painted in Giverny, France; London; and Venice. The Museum of Fine Arts, Boston, is to open "Monet in the 20th Century" Sept. 20.

E-mail by phone service offered

Suburban Chicago-based Planetary Motion (www.planetarymotion.com) said its free e-mail-by-phone service is now available in 13 major cities, including New York, Chicago and Los Angeles. The company said CoolMail consolidates e-mail accounts and gives users access to all messages with a telephone call. When there are messages in a user's in-box, the service's automated attendant will "read" them over the phone, using text-to-speech technology. CoolMail was introduced in the Chicago area six weeks ago, according to Planetary Motion's chairman, Robert D. Newman.

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